Longview Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All secondhand dealers operating in Longview, Washington
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Precious Metal Dealers in Longview: The Longview Finance Department
Chapter 5.64 of the Longview Municipal Code requires all secondhand dealers operating in the city to obtain a license from the Finance Department before conducting business. The Longview City Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $1,000 surety bond to be eligible for a license.
What is the Purpose of the Longview Secondhand Dealer Bond?
Longview requires secondhand dealers to purchase a surety bond as part of the application process to obtain a license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in Longview Municipal Code 5.64.035. Specifically, the bond protects the public if the secondhand dealer engages in acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Longview Secondhand Dealer Surety Bond?
BondExchange makes obtaining a Longview Secondhand Dealer bond easy. Simply log in to your account and use our keyword search to find the “Secondhand Dealer” bond in our database. Don’t have a login? Gain Access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required for the Longview Secondhand Dealer Bond?
No, a credit check is not required for the Longview Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers operating in the city, regardless of their credit history.
How Much Does the Longview Secondhand Dealer Bond Cost?
The Longview Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Longview Secondhand Dealer Bond?
Longview requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase the Revised Code of Washington 19.60.010, a secondhand dealer is a person who purchases and sells secondhand goods or other property from a person who is not a wholesaler, for the purpose of reselling or exchanging the property.
Exemptions to this definition include:
- Nonprofit organizations
- Licensed motor vehicle dealers
- Wholesalers or estate sales
- Vehicle wreckers and scrap processors
- Trade-ins and exchanges of goods
- Sales of postcards, books, or magazines
- Purchases of empty containers or other junk
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Secondhand Dealers Apply for a License in Longview?
Secondhand dealers in Longview must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Finance Department’s website for details on the process.
License Period – All Longview Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $1,000 surety bond.
Step 2 – Submit an Application
Secondhand dealers must submit their completed application to the Finance Department at the following address:
P.O. Box 128
Longview, WA 98632
Dealers must complete the application in its entirety and ensure they submit the following items:
- $150 license fee
- Surety bond
- Certificate of Occupancy
- Type of company ownership
How Do Longview Secondhand Dealers Renew Their Licenses?
To renew their license, secondhand dealers must submit a completed application to the Finance Department at the following address:
P.O. Box 128
Longview, WA 98632
Secondhand dealers must pay a $150 renewal fee and renew their surety bond to avoid termination of their license. All Longview Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Secondhand Dealers in Longview?
Longview does not require secondhand dealers to purchase any additional insurance. However, secondhand dealers must purchase and maintain a $1,000 surety bond.
How Do Longview Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the Finance Department at the following address:
P.O. Box 128
Longview, WA 98632
The bond requires signatures from the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the permit type applied for
- Bond amount
- Date the bond goes into effect
- Signing date of the bond
What Can Longview Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Longview must adhere to all licensing regulations and ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Provide weekly reports to the Longview Police Department
- Maintain a register of all items bought and sold
What Other Insurance Products Can Agents Offer Secondhand Dealers in Longview?
Longview does not require precious metal dealers to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. Agents can access a list of brokers online here.
How Can Insurance Agents Prospect for Longview Secondhand Dealer Customers?
Longview unfortunately does not provide a public database of active secondhand dealers in the city. We suggest contacting the Finance Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.